Bill Text: TX HB2420 | 2015-2016 | 84th Legislature | Introduced

Texas House Bill 2420 (Prior Session Legislation)

Introduced

Bill Title: Relating to a franchise tax credit for wages paid to certain employees by certain new businesses located in small municipalities.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-03-13 - Referred to Ways & Means [HB2420 Detail]

Download: Texas-2015-HB2420-Introduced.html

	84R9543 KLA-D

	By: Kacal	H.B. No. 2420



	A BILL TO BE ENTITLED
	AN ACT
	relating to a franchise tax credit for wages paid to certain
	employees by certain new businesses located in small
	municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 171, Tax Code, is amended by adding
	Subchapter R to read as follows:
	SUBCHAPTER R. TAX CREDIT FOR WAGES PAID BY CERTAIN
	TAXABLE ENTITIES IN SMALL MUNICIPALITIES
	Sec. 171.871. ENTITLEMENT TO CREDIT. A taxable entity is
	entitled to a credit in the amount and under the conditions provided
	by this subchapter against the tax imposed under this chapter.
	Sec. 171.872. QUALIFICATION. A taxable entity qualifies
	for a credit under this subchapter if the taxable entity:
	(1) on or after September 1, 2015:
	(A) is chartered or organized; and
	(B) first begins doing business in this state in
	a municipality with a population of less than 3,000; and
	(2) is not substantially similar in ownership and
	operation to another entity doing business in the municipality
	described by Subdivision (1)(B) before the taxable entity was
	chartered or organized.
	Sec. 171.873. AMOUNT OF CREDIT. The amount of the credit is
	50 percent of the wages paid by the taxable entity before the second
	anniversary of the date the taxable entity first began doing
	business in a municipality described by Section 171.872(1)(B) to
	each employee who:
	(1) begins employment with the taxable entity on or
	after September 1, 2015, in a full-time employment position that is
	located or based in that municipality; and
	(2) is a resident of this state.
	Sec. 171.874. APPLICATION FOR CREDIT. (a) A taxable entity
	must apply for a credit under this subchapter on or with the tax
	report for the period for which the credit is claimed.
	(b) The comptroller shall promulgate a form for the
	application for the credit. A taxable entity must use the form in
	applying for the credit.
	Sec. 171.875. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
	taxable entity may claim a credit under this subchapter for wages
	paid during an accounting period only against the tax owed for the
	corresponding privilege period.
	SECTION 2. This Act applies only to a report originally due
	on or after the effective date of this Act.
	SECTION 3. This Act takes effect January 1, 2016.